Coventry Health Care, Bethesda, Md., agreed to acquire the workers compensation managed-care business of Concentra Operating Corp., Addison, Texas, for $387.5 million in cash. The business, which generated $324 million in revenue last year, provides PPO network and pharmacy benefits management, as well as billing services, case management and independent medical exams for workers compensation programs. The deal is expected to close in 90 to 180 days, pending regulatory approval. Concentra will continue to provide services to group health and auto insurers. The deal marks Coventrys first major acquisition since it bought First Health Group Corp. for $1.8 billion in January 2005. Coventry said the acquisition would add slightly to earnings in the first year after closing. -- by Laura B. Benko
Concentra sheds workers comp business
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